Certain lenders and noteholders of iHeartMedia on Monday said John Malone's Liberty Media Corp. proposed to buy a 40 percent stake in a restructured version of iHeart for $1.16 billion.

The offer comes less than a month after struggling radio station owner iHeart skipped a $106 million interest payment, triggering a 30-day grace period to buy more time to restructure its $20 billion debt and avoid bankruptcy.

If iHeart does not reach a deal with creditors by the end of this period and still does not make the payment, the creditors can call their debt due immediately, potentially pushing the company into bankruptcy.

Monday's proposal, which was made public via a term sheet issued to certain lenders and noteholders of iHeart, is intended to comply with existing restructuring support agreement discussions.

Liberty is willing to finance working capital needs once iHeart has filed for Chapter 11 bankruptcy through a debtor-in-possession financing facility, according to the document.

In return, Liberty will receive 40 percent of the new shares of the company along with its majority held subsidiary Sirius XM Holdings Inc.